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Fruit of Loom profit alert
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June 16, 1999: 10:37 a.m. ET
Apparel maker says weak sales, low inventory to hurt 2Q results
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NEW YORK (CNNfn) - Fruit of the Loom Ltd., the apparel maker known its fruit-logo underwear, warned Wednesday its fiscal second-quarter earnings will be sharply lower than expected.
Chicago-based Fruit of the Loom blamed the revised outlook on weak sales in its sports licensing division and an inventory shortage in the company's active wear line.
Fruit of the Loom (FTL) anticipates revenue for the second quarter, ending July 3, between $570 million and $590 million, lower than the $628 million in the second quarter last year.
The company didn't provide revised earnings estimates, but analysts in a First Call Corp. survey had expected earnings of 49 cents per diluted share. A company spokesman wasn't immediately available for comment.
Inventories are expected to be approximately $80 million to $100 million below last year's second-quarter level of $913 million, Fruit of the Loom said.
The company will announce actual results July 22.
Wednesday's earnings warning follows two money-losing quarters for the company, with losses per share of 13 cents in the first quarter and 15 cents in the fourth quarter last year.
Fruit of the Loom shares, off 68 percent in the last 52 weeks, fell 1-3/16 to 9-½ in early trading Wednesday. 
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Fruit of the Loom
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